A Banking Break Up

Having a joint bank account is not always a smart idea.  As with many financial decisions, there are ups and downs to opening a joint bank account.

I have a joint bank account with my Dad because we live in 2 different cities. It is easier (and cheaper) to send money back and forth via our joint bank account.  I can deposit money into our account in Montreal and instantly my Dad has access to the money in Toronto.

I have been with my boyfriend, Nick, for 10 years and we do not have a joint bank account.  Our monthly bills are divided evenly and each of us pays our own portion.  As an example, I make the monthly the car payments; and Nick pays for the gas, parking, and insurance. Since we can’t commit to combining our lives until death do us part, I don’t feel we should assume each others assets…and liabilities.

If you are thinking of opening a joint bank account here are some Pros and Cons to help you make your decision easier

Four Good Reasons to Open a Joint Bank Account

1. If you are in different cities you can avoid fees on sending money orders
2. If you travel or are away from home your partner will still have access to the money for joint expenses and household bills
3. You have instant access to your money.  You don’t need to wait for a cheque to clear if the other person owes you money
4. It is easier to transfer money between your other personal accounts and your joint account

Four Reasons Why a Joint Bank Account Is a Bad Idea

1. You may both always need to be together for any transactions
2. You may not have access to telephone and online banking.  This depends on the account ownership type
3. It can cost more in fees for a joint account because more transactions are needed per month
4. If you no longer want the account to be joint, in many cases it must be closed. You cannot (often) remove one person’s name and keep the bank account active

Do you have a joint bank account with someone?

Photo By suburbandollar

Kristina Tahnyak

Tahnya is a Certified Financial Planner and former Investment Advisor turned marketing and communications professional She holds a degree from Concordia University, is debt free and currently works in the field of digital marketing.